Passed by Congress, $25B Automaker Loan Bill Heads to Bush

President Bush is expected to approve $25 billion in loans for American automakers after the Senate approved the measure overwhelmingly on Saturday.

The legislation, which would provide backing for investments in more fuel efficient vehicles, was included as part of a broader $630 billion spending bill that funds the federal government through March. The bill passed 78-12 after advancing in the House last week.

The Big Three automakers in Detroit — Ford, Chrysler, and General Motors — lobbied aggressively for the loans, arguing to lawmakers that mounting losses had prevented them from accessing the private credit markets. Conservatives attacked the bill as a government bailout for an industry that had only itself to blame for lagging behind foreign competitors in the production of fuel efficient vehicles that are now in demand. Both presidential candidates, fighting for votes in the battleground of Michigan, supported the measure.